Pork industry told to improve competitiveness

A report tabled in Federal Parliament has rejected the Australian pork industry's claim it does not get enough government assistance.

The Productivity Commission has found the industry needs to to be more competitive on the world stage to survive.

The 344-page report examined the competitiveness of the Australian pork industry relative to international producers.

Commissioner Neil Byron said he saw little evidence that overseas pork producers, especially those from Denmark, were heavily subsidized, even though a number of submissions raised concerns about the issue.

He also noted that Australia has an advantage because it is seen as disease-free, but the main hindrance to its competitiveness is from the cost of feed.

"But its quarantine restrictions on the importation of cheap grain into Australia leaves pig producers in a difficult position because it drives up costs," Mr Byron said.

"If Australia wants to be a big pig exporter it needs to look closely at its grain program."

But the chairman of the New South Wales Farmers Pork Committee, Dugald Walker, says the report, and the Government's response, do not solve the real problem of subsidised imports.

"We're very grateful for the help that the Government has given us and some of it is absolutely considerable," he said.

"But you can't get away from the problem that an industry has when it is getting imported pig meat from other countries and some of that pig meat has assistance to the tune of 40 per cent of our cost of production.

"It doesn't matter what you do, you can't get over that."

The industry's peak body, Australian Pork Limited has rejected the report, saying it is fundamentally flawed.